Budget airline easyJet led the losses on the FTSE 100, nose-diving by 22.3 per cent after it warned the UK's vote to quit the European Union meant "additional economic and consumer uncertainty is likely this summer".

EasyJet, one of the biggest airlines in Europe, said it expected revenues to fall as a result of Brexit. British Airways owner International Consolidated Airlines Group recorded a 15.9 per cent fall in its shares.

The pound and UK stocks have taken a hammering for a second consecutive trading day today, as investor sentiment continues to wane on the largely unknown consequences of Friday’s Brexit result.

What we really need is some form of decisive action, as financial markets seek reassurance that things will be OK. What we look likely to get is two months of political infighting, followed by another 20 months of uncertainty as the new leader somehow attempts to secure a deal which appeals to the many facets of the leave campaign.

This will all take time and in the meanwhile, investors and businesses are left to ponder what the potential impact will be of this monumental decision.

Housebuilders were demolished, making up three of the top five biggest fallers.

Barratt Developments finished down by down by 19.4 per cent and Travis Perkins down by 16.7 per cent. Taylor Wimpey was down by 14.9 per cent.

Barclays – which had already lost 20 per cent of value on Friday – fell a further 17.3 per cent today. Lloyds Banking Group finished 10.3 per cent lower, dialling back investor expectations that the government would sell its remaining stake any time soon.